India To Operationalise Its First-Ever European Trade Pact With EFTA On 1 October: Piyush Goyal

India will formally bring into force its trade agreement with the European Free Trade Association (EFTA) bloc on 1 October, making it the country’s first trade pact with a European grouping.

Union Commerce and Industry Minister Piyush Goyal announced this development at the valedictory session of the UP International Trade Show. The agreement had been concluded earlier in March 2024.

The Free Trade Agreement (FTA) was signed between India and the European Free Trade Association (EFTA) member states — Iceland, Liechtenstein, Norway, and Switzerland.

The launch will be marked at a ceremony at Bharat Mandapam in New Delhi, with Commerce and Industry Minister Piyush Goyal, ministers from the four EFTA nations, senior officials and industry representatives expected to attend, as per a Business Standard report.

India has pledged to eliminate duties on 80–85 per cent of imports from EFTA, while exporters will gain duty-free access to 99 per cent of EFTA markets. Sensitive areas such as dairy and agriculture have been kept outside the tariff framework to protect domestic producers.

The pact also brings a significant investment element: the four EFTA nations have committed to channel $50 billion into India over the first decade, with a further $50 billion over the following five years.

This investment is expected to generate around one million direct jobs over 15 years.

Switzerland dominates India’s trade with the bloc, accounting for nearly all imports worth $21.8 billion in FY25.

While India’s exports stood at just under $2 billion, the government views the investment-led model as a long-term strategy to balance trade and boost industrial growth.

The Minister added that India is currently holding talks with the US, European Union, New Zealand, Oman, Peru, and Chile, while Qatar and Bahrain have also shown interest.

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